Daily Business Report-May 31, 2018
Rendering of East Village Green Park. (Credit: Civic San Diego)
Plans for the East Village Green Park
Presented to Civic San Diego Board
The Civic San Diego board received a presentation on the future East Village Green (EVG) Park, located between 13th, F, 15th and G streets in the East Village neighborhood of Downtown San Diego.
The potential full-park site is comprised of one typical downtown block (60,000 square feet) and one “superblock” (120,000 square feet).
Based upon the current concept design, Phase 1 will contain these main elements: a central multi-purpose lawn, community center, children’s playground, performance pavilion, two café buildings, off-leash dog park, 14th street plaza, games area and casual park areas, two levels of underground parking, public restrooms, and the relocation and renovation of two historic homes.
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Less Than 10 Percent of Homeowners
Are Underwater on Their Mortgages
More than a decade after the housing market collapsed, the recovery has passed another milestone. The share of homeowners who owe more than the value of their home is 9.1 percent, falling below 10 percent for the first time since the housing market fell, according to Zillow’s 2017 Q4 Negative Equity Report.
The typical U.S. home lost more than a quarter of its value when the market crashed, sending millions of homeowners into negative equity, when their homes’ values were lower than the balances on their mortgages. Now, though, national home values are higher than ever, and many owners who held on to their homes throughout the housing crisis have resurfaced on their mortgages.
Still, despite the progress made as the negative equity rate falls, 4.4 million homeowners remain underwater, and about 713,000 of them owe at least twice as much as their homes’ value.
In the San Diego metro area, 23,290 homes are in negative equity, a negative equity rate of 5.3 percent, according to Zillow. The share of homeowners in the region who owe more than the value of their home is 8.2 percent.
Negative equity acts as a drag on the overall housing market, extending beyond homeowners who are underwater. Low inventory is one of the main factors in driving home values higher, as demand from millennials – the largest group of homebuyers – exceeds the available supply. Underwater homeowners are contributing to this shortage, holding on to their homes instead of selling for a loss.
“For much of the country the Great Recession is an increasingly distant memory — the American economy is booming once again and markets are now shifting their gaze to future downturn risks,” said Zillow senior economist Aaron Terrazas. “But scattered in neighborhoods across the country, the legacy of the mid-2000s housing bubble and bust lingers among the millions of Americans still underwater on their mortgages, trapped in their homes with no easy options to regain equity other than waiting. Their struggles mean there are fewer homes on the market for homebuyers today. In corners of the country where home values have been stagnant in recent years, recent homebuyers can easily fall underwater, particularly those who buy with small down payments.”
Nationally, roughly one in seven homeowners with a mortgage (15.4 percent) have some equity in their home, but likely not enough to sell and comfortably use the proceeds for a down payment on another home. Including these homeowners with limited equity, the nation’s “effective” negative equity rate jumps to 24.6 percent.
Detroit homeowners have the furthest to go to regain positive equity. In the metro, 25.4 percent of homeowners currently in negative equity – or about 22,000 – still owe at least double the value of their home.
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The Ezabelle Mixed-Use Project
Gets Civic San Diego Board OK
The Civic San Diego board has voted to recommend approval of The Ezabelle Project to the City Planning Commission. The project includes a seven-story, 77-foot tall mixed-use development comprised of 45 dwelling units, with six units (13 percent) restricted to very low-income residents, as well as approximately 1,722 square feet of ground floor commercial space. Nakhshab Development & Design Inc is the developer and architect.
The project is located on a 4,200-square-foot site on the west side of 13th Street, between Island Avenue and J Street in the East Village neighborhood. It will incorporate a designated historic resource into the design of the building and then be reviewed by the Historic Resources Board prior to the Planning Commission public hearing.
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U.S. Tax Overhaul Makes Biotech
Players Hungry for Big Deals
Industry analysts are predicting that 2018 will turn out to be a banner year for merger and acquisition activity in the biotech/pharma sector, with up to $200 billion in assets changing hands.
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Qualcomm Teams with Facebook
to Bring Uber-fast Wi-Fi to Cities
Qualcomm is teaming up with Facebook to test “fiber in the sky” Wi-Fi technology that aims to bring high-speed Internet to big cities. Called Terragraph, Facebook’s mesh network technology already has two announced field trials in Europe. Tests are expected to begin in partnership with Qualcomm in the U.S. next year.
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Portfolium Chosen by Rochester
Institute of Technology
Portfolium, the only Student Success Network that connects teachers, students and employers, has partnered with the Rochester Institute of technology to help students increase their odds of landing an interview or job offer by strengthening their skills-based portfolios.
RIT students are using Portfolium to demonstrate soft skills such as communication alongside technical skills such as mechanical design and deep learning to maximize their appeal as well-rounded individuals with proven competencies beyond their ability to earn a degree.
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General Atomics Forms Team for Canada’s
Remotely Piloted Aircraft Project
General Atomics’ aeronautical systems business has partnered with CAD, L3 Technologies’ Wescam subsidiary and Maxar Technologies’ MDA business to form an industry team that aims to meet Canada’s requirements for multi-mission remotely piloted aircraft systems. Team SkyGuardian Canada will offer the MQ-9B SkyGuardian drone for the Canadian armed forces’ RPAS project that seeks a medium-altitude, long-endurance RPA and related systems and services, General Atomics said.
The General Atomics-built MQ-9B aircraft is designed to carry wide-area maritime radars and sensor payloads and provide more than 40 hours of flight time.
Linden Blue, CEO of General Atomics Aeronautical Systems Inc., said the industry team will continue to add small- and medium-sized businesses in Canada in support of the country’s RPAS program.
Joe Armstrong, vice president and general manager of CAE Canada, said the company will leverage its experience in aircrew training and in-service support delivery as part of the industry team.
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Denise Visconi Named New Chair
of North San Diego Business Chamber
Denise Visconti will take the reins of the North San Diego Business Chamber as new chair of the board, effective July 1. Visconti is office managing shareholder of the San Diego office of Littler Mendelson, a law firm devoted to representing management in employment, employee benefits and labor law matters.
Charlie Piscitello, current board chair has served on the board for four years and will term out June 30. Shewill remain on the board as immediate past chair and as a director.
The Board also elected to form an Advisory Board with representation from municipalities and agencies that impact the North San Diego region.
The new board of directors for the 2018-2019 Term include: Trudy Armstrong, director regional outreach, San Diego Foundation; Lisa Hellmann, senior director, Global Internal Communications; Hologic
Babett Hirzel, general manager, Embassy Suites La Jolla; Stacy Rungaitis, executive director, Palomar College Foundation; Nick Torres, partner, Hochman-Torres LLP.
Advisory Board
RDML Yancey B. Lindsey, commander, Navy Region Southwest; Geoff Patnoe, director, strategy, county of San Diego; Tina White, city manager, Poway,
